Download or read book The Determination of Interest Rates and the Effectiveness of Monetary Policy in Deregulated Financial Markets written by Penelope Neal and published by . This book was released on 1992 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Determination of Long term Interest Rates written by Benjamin M. Friedman and published by . This book was released on 1979 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: The object of this paper is to bring to bear on financial-non financial interactions a richer approach to modeling the determination of long-term interest rates. in a series of previous papers. I have developed an alternative model based explicitly on the truism that any factor affecting long-term bond yields does so by (and only by) influencing some borrower's supply of bonds and/or some lender's demand for bonds. Rather than model the bond yield directly, as in the single-equation term-structure approach, this work instead models the supply of and the demand for bonds , and determines the bond yield at the level necessary to equate resulting total supply and demand. The specific bond supplies and demands modeled in this work are those in the U .S. market for corporate bonds; this market is the primary source of long-term external lands to finance business fixed investment, and the corporate bond yield is also the long-term interest rate most frequently used in single-equation models of term-structure relationships. This paper reports the implications of this supply-demand model of long-term interest rate determination for the effectiveness of monetary and fiscal policies, as modeled in all other respects by the MJT-Penn-SSRC (henceforth MPS) econometric model of the United Stares. The new research tool applied in this paper is therefore altered MPS model from which the usual single term-structure equation has been removed and into which a supply-demand model of the bond market has been substituted. The only difference between this altered MPS model and the familiar NIPS model therefore lies in the determination of long-term asset yields and prices. Since these long-term yields and prices are such an important part of the overall bearing of financial market developments on nonfinancial behavior, however, the altered model exhibits interesting implications for fiscal and monetary policies
Download or read book The Redistributive Effects of Financial Deregulation written by Mr.Anton Korinek and published by International Monetary Fund. This book was released on 2013-12-17 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial regulation is often framed as a question of economic efficiency. This paper, by contrast, puts the distributive implications of financial regulation center stage. We develop a model in which the financial sector benefits from risk-taking by earning greater expected returns. However, risktaking also increases the incidence of large losses that lead to credit crunches and impose negative externalities on the real economy. We describe a Pareto frontier along which different levels of risktaking map into different levels of welfare for the two parties. A regulator has to trade off efficiency in the financial sector, which is aided by deregulation, against efficiency in the real economy, which is aided by tighter regulation and a more stable supply of credit. We also show that financial innovation, asymmetric compensation schemes, concentration in the banking system, and bailout expectations enable or encourage greater risk-taking and allocate greater surplus to the financial sector at the expense of the rest of the economy.
Download or read book The Liquidation of Government Debt written by Ms.Carmen Reinhart and published by International Monetary Fund. This book was released on 2015-01-21 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: High public debt often produces the drama of default and restructuring. But debt is also reduced through financial repression, a tax on bondholders and savers via negative or belowmarket real interest rates. After WWII, capital controls and regulatory restrictions created a captive audience for government debt, limiting tax-base erosion. Financial repression is most successful in liquidating debt when accompanied by inflation. For the advanced economies, real interest rates were negative 1⁄2 of the time during 1945–1980. Average annual interest expense savings for a 12—country sample range from about 1 to 5 percent of GDP for the full 1945–1980 period. We suggest that, once again, financial repression may be part of the toolkit deployed to cope with the most recent surge in public debt in advanced economies.
Download or read book The Financial Crisis Inquiry Report written by Financial Crisis Inquiry Commission and published by Cosimo, Inc.. This book was released on 2011-05-01 with total page 692 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.
Download or read book Interest Rate Liberalization written by Mr.Bart Turtelboom and published by International Monetary Fund. This book was released on 1991-12-01 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper undertakes a survey of theoretical considerations and an analysis of the experience of five African countries with interest rate liberalization. Despite substantial progress in monetary policy reforms, liberalization has only partially affected the level and variability of interest rates. Several factors—macroeconomic instability, oligopolistic financial markets, the absence of developed capital markets, as well as the sequencing of the liberalization programs and the asymmetric availability of information—explain the increase in the spread between lending and deposit rates as well as the rather inflexible pattern of interest rates during the transition to a market-based financial system.
Download or read book The Operation and Regulation of Financial Markets written by David A. Currie and published by Springer. This book was released on 1987-01-19 with total page 285 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial markets in Britain, and elsewhere, are in the midst of a process of fundamental structural change. The resulting shifts in the behaviour of such markets will require the authorities, in turn, to revise their regulatory and control methods. This book incorporates a series of articles by leading British monetary economists to examine both the implications of such structural changes and also to model the current working of these markets. Within this unified framework, the articles range from descriptive accounts of recent developments in bank supervision and in the structure of the London capital markets to more formal econometric studies of the inter-relationships between money and other economic variables, and of the workings of financial markets. This provides a showcase to exhibit the most up-to-date research of leading British monetary economists.
Download or read book Interest Rate Liberalization and Money Market Development written by Mr.Bernard Laurens and published by International Monetary Fund. This book was released on 1996-12-30 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book by Hassanali Mehran, Bernard Laurens, and Marc Quintyn brings together the papers presented at a seminar held in Beijing, China, in August 1995 and sponsored jointly by the IMF's Monetary and Exchange Affairs Department and the Poeple's Bank of China. The papers were written by central bankers from China, Italy, Korea, Malaysia, Thailand, and Turkey. The Chinese authorities were specifically interested in learning more about the Italian and Turkish models of interbank markets and in the experiences of neighboring Asian countries with interest rate liberalization. The U.S. experience was also presented, and the introduction to the book draws policy lessons from the experiences presented at the seminar.
Download or read book Trade and Investment Performance Under Floating Exchange Rates written by International Monetary Fund and published by International Monetary Fund. This book was released on 1988-05-03 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contrary to the arguments of several scholars, we have failed to find either a conclusive theoretical case or clear empirical evidence of an effect, harmful or otherwise, of exchange rate variability (as measured by either short-term volatility or long-run misalignment) on overall levels of international trade. In this paper, after reviewing the theories and evidence on this issue, we go on to consider the impact of exchange rate variability on direct foreign investment. We summarize and amplify upon the scant theoretical literature of this issue, and proceed to test U.S. data for the presence of such an impact. We find none.
Download or read book The Nordic Banking Crisis written by Mr.Burkhard Drees and published by International Monetary Fund. This book was released on 1998-04-20 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the banking crises in Finland, Norway and Sweden, which took place in the early 1990s, and draws some policy conclusions from their experiences. One key conclusion is that factors in addition to business cycle effects explain the Nordic countries financial problems. Although the timing of the deregulation in all three countries coincided with a strongly expansionary macroeconomic momentum, the main reasons for the banking crises were the delayed policy responses, the structural characteristics of the financial systems, and the banks inadequate internal risk-management controls.
Download or read book Guide to Financial Markets written by Marc Levinson and published by The Economist. This book was released on 2018-07-24 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: The revised and updated 7th edition of this highly regarded book brings the reader right up to speed with the latest financial market developments, and provides a clear and incisive guide to a complex world that even those who work in it often find hard to understand. In chapters on the markets that deal with money, foreign exchange, equities, bonds, commodities, financial futures, options and other derivatives, the book examines why these markets exist, how they work, and who trades in them, and gives a run-down of the factors that affect prices and rates. Business history is littered with disasters that occurred because people involved their firms with financial instruments they didn't properly understand. If they had had this book they might have avoided their mistakes. For anyone wishing to understand financial markets, there is no better guide.
Download or read book Output Measurement in the Service Sectors written by Zvi Griliches and published by University of Chicago Press. This book was released on 2008-04-15 with total page 576 pages. Available in PDF, EPUB and Kindle. Book excerpt: Is the fall in overall productivity growth in the United States and other developed countries related to the rising share of the service sectors in the economy? Since services represent well over half of the U.S. gross national product, it is also important to ask whether these sectors have had a slow rate of growth, as this would act as a major drag on the productivity growth of the overall economy and on its competitive performance. In this timely volume, leading experts from government and academia argue that faulty statistics have prevented a clear understanding of these issues.
Download or read book Modern Money Theory written by L. Randall Wray and published by Springer. This book was released on 2015-09-22 with total page 322 pages. Available in PDF, EPUB and Kindle. Book excerpt: This second edition explores how money 'works' in the modern economy and synthesises the key principles of Modern Money Theory, exploring macro accounting, currency regimes and exchange rates in both the USA and developing nations.
Download or read book Sequencing Financial Sector Reforms written by International Monetary Fund and published by International Monetary Fund. This book was released on 1991-03-15 with total page 412 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial sector liberalization can spur economic growth and development, but reforms to liberalize the financial sector can also entail risks if they are not properly designed and implemented. One of the central questions for countries reforming their financial systems is how to sequence the reforms so as to maximize the benefits of liberalization and contain its risks. Edited by R. Barry Johnston and V. Sundararajan of the IMF's Monetary and Exchange Affairs Department, this book attempts to answer this and related questions by drawing lessons from financial sector reforms in selected countries. In particular, the book surveys financial sector reforms in Indonesia, Thailand, and Korea between the mid-1980s and mid-1990s.
Download or read book Central Banking and Monetary Policy in Muslim Majority Countries written by Akhand Akhtar Hossain and published by Edward Elgar Publishing. This book was released on 2015-08-28 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt: The introduction of Islamic banking and finance across the globe strengthens the argument for low and stable inflation and rule-based monetary policy for sustained economic growth. Although Islamic banking and finance may have created some complexities
Download or read book Macroeconomics and Markets in India written by Ashima Goyal and published by Routledge. This book was released on 2014-07-10 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: India was one of the better performers after the global financial crisis, and has done well despite opening out in a period of great international volatility. This book asks if this was due to luck or to good management. How much did macroeconomic policy contribute and did it do as much as it could have, on a reform path that was not standard? Are there any lessons from the Indian experience for the rest of the world? Senior Indian policy economists, market participants, and researchers address these interesting and important questions. There are those who think financial reform has gone too fast - relaxations in foreign borrowing norms exposed firms to external shocks. Volatile capital flows impacted markets, although more liberalization of risk-sharing equity compared to debt flows, was effective in reducing domestic risk. But there are also those who think reform was too slow - choking financial development: many markets and instruments that could improve domestic financial intermediation and reduce risk were held back. Analysis suggests policy was able to find the correct timing, pace and combination of reforms and of caution, but improvement is always possible. Luck and inherent strengths of the economy helped absorb both policy mistakes and external shocks. This book was originally published as a special issue of Macroeconomics and Finance in Emerging Market Economies.
Download or read book Contents of Recent Economics Journals written by and published by . This book was released on 1993 with total page 618 pages. Available in PDF, EPUB and Kindle. Book excerpt:
